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End of surge prices by new policy: Delhi Government

Policy would enable Delhi govt to impose penalties on app-based companies in case of surge pricing

Policy Pulse
Publish Date: May 3 2016 4:24PM | Updated Date: May 3 2016 5:26PM

End of surge prices by new policy: Delhi Government

In order to halter private taxi operators, AAP led by CM Arvind Kejriwal is planning a new policy which would lay down fares and permit requirements for all app-based cab services. All this is being done to tighten the bridle of all private taxi operators who created a sudden raise in the fares.  To do so, Delhi government is taking all stakeholder consultations into account and is working on to finalize the policy. 


The policy would enable Delhi government to impose penalties on the app based companies in case of surge pricing, increase in fares if demand goes high, and also undercutting their fares to protect commuters as well as other private taxi operators. 


The app based cab operators increased prices during the second phase of odd even which took place from 15th April to 30th April. The whole issue became the matter for discussions on social media.


As these app based cab service operators are presently not registered with Delhi transport department, it may pose a problem for Delhi government as it disables the government to take any legal action against the operators for asking a high price.


Delhi’s Transport Minister, Gopal Rai also tweeted in support of the government and said, “If any company is overcharging in the name of surge pricing, call and complain on 011-42400400. We will take strict action.”


The government criticized the cab operators earlier when they reintroduced increased prices by saying that the move was illegal and actions would be taken in case commuters complain on transport helpline.